EurUsd: Breaking out of the channel, or bouncing back in?

The EurUsd closed last week a very bullish week, caused by the weakness of the dollar, mostly due to a bad job report. On Friday, it broke out its monthly trend in blue, which drove it to the top of the channel. The EMAs are converging upward, announcing the emergence of a new bullish monthly trend, should the EurUsd sell its 1.14307 resistance level , which will erase most of the losses it has upheld since the middle of August.

The EurUsd is confronted to two choices. It will either breakout the channel, with 1.1477 as a main objective, and 1.14307 as a primary objective. Or, it will head towards the bottom of the channel, with 1.12239 as an objective, and 1.12988 as a primary objective.

On a daily scale, The EurUsd will have 1.14307 as an objective, should it breakout 1.13884. Failing to breakout the channel will send it south towards 1.13038, with 1.13387 as a primary objective.